NJ Tax Assessors Exam - Terms and
Concepts UPDATED QUESTIONS AND
CORRECT ANSWERS
What are the three basic requirements of the assessor? - CORRECT
ANSWER Discovery, listing, and valuation
To find effective tax rate multiply the tax rate by ____? - CORRECT
ANSWER Assessment level
The six basic rights associated with property are ______? - CORRECT ANSWER Sell,
lease/rent, use, give away, enter or leave, refusal to do any of the above
What are the three major classifications of property? - CORRECT ANSWER Real
property, personal property, intangible personal property
List the appraisal principles which form the foundation for highest and best use analysis. -
CORRECT ANSWER Anticipation, balance, change, competition, conformity,
consistent use, contribution, increasing and decreasing returns, substitution, supply and
demand, surplus productivity
What are the four forces that influence value? - CORRECT ANSWER Physical,
economic, governmental, social
Highest and best use is always the that use that would produce the ______ ____ of a property,
regardless of its actual current use. - CORRECT ANSWER Highest value
The four tests for highest and best use are _____ - CORRECT ANSWER Legally
allowable, physically allowable, financially feasible, maximally productive
,List the 7 major steps of the appraisal process. - CORRECT ANSWER 1. Definition of
the problem,
2. Determination of the scope of the appraisal
3. Preliminary survey and analysis
4. Data collection and analysis
5. Highest and best use analysis
6. Application of the three approaches to value
7. Correlation/reconciliations of indicated values to derive final estimate of defined value
What are the three approaches to value used by appraisers to estimate value? - CORRECT
ANSWER Cost, sales comparison, and income
The land identification system based on semi-permanent physical features or bearings on a
compass is known as ____ and ____. - CORRECT ANSWER Metes and bounds
Residential subdivisions are commonly described by the ____ and ____ system of land
identification. - CORRECT ANSWER Block and lot
Name the 8 characteristics that affect land value. - CORRECT ANSWER Frontage,
width, depth, area, shape, topography, location, and off-site improvements
What is the 40-30-20-10 rule? - CORRECT ANSWER This rule describes the
percentage of the value of each quarter of land based on its depth. The first 25% of the land
amounts to 40% of the assessed value, the next 25% represents 30% of the value, the next
25% represents 20%, and the final 25% represents 10%.
Cost to produce an exact replica of a structure using the same materials, construction
standards, and quality of workmanship is known as ________ ____ ___ - CORRECT
ANSWER Reproduction cost new
, Cost to produce a structure with equivalent utility using contemporary materials and
standards is known as _________ ____ ___ - CORRECT ANSWER Replacement cost
new
Cost of a property when it was originally constructed is known as __________ cost -
CORRECT ANSWER Historical
The age of a property based on condition and utility is know as the ______ ___. - CORRECT
ANSWER Effective age (EA)
Compare and contrast remaining economic life (REL) and economic life (TEL). - CORRECT
ANSWER REL estimates the number of years remaining during which improvements
contribute to property. TEL is the total number of years that improvements on land contribute
to property value.
List the three types of depreciation. - CORRECT ANSWER Physical deterioration,
functional obsolescence, external (economic) obsolescence
A ______ roof is a one which has a steeper lower part and a shallower upper part. -
CORRECT ANSWER Mansard
A _____ is a triangular portion of a wall between the edges of a dual-pitched roof -
CORRECT ANSWER Gable
A ______ is a usually symmetrical two-sided roof with two slopes on each side. The upper
slope is positioned at a shallow angle, while the lower slope is steep. - CORRECT
ANSWER Gambrel
A ____ roof is flat. - CORRECT ANSWER Flat, buddy!
This kind of house is described as long, close-to-the-ground profile, long, low roofline;
typically one-story. - CORRECT ANSWER Ranch-style house
Concepts UPDATED QUESTIONS AND
CORRECT ANSWERS
What are the three basic requirements of the assessor? - CORRECT
ANSWER Discovery, listing, and valuation
To find effective tax rate multiply the tax rate by ____? - CORRECT
ANSWER Assessment level
The six basic rights associated with property are ______? - CORRECT ANSWER Sell,
lease/rent, use, give away, enter or leave, refusal to do any of the above
What are the three major classifications of property? - CORRECT ANSWER Real
property, personal property, intangible personal property
List the appraisal principles which form the foundation for highest and best use analysis. -
CORRECT ANSWER Anticipation, balance, change, competition, conformity,
consistent use, contribution, increasing and decreasing returns, substitution, supply and
demand, surplus productivity
What are the four forces that influence value? - CORRECT ANSWER Physical,
economic, governmental, social
Highest and best use is always the that use that would produce the ______ ____ of a property,
regardless of its actual current use. - CORRECT ANSWER Highest value
The four tests for highest and best use are _____ - CORRECT ANSWER Legally
allowable, physically allowable, financially feasible, maximally productive
,List the 7 major steps of the appraisal process. - CORRECT ANSWER 1. Definition of
the problem,
2. Determination of the scope of the appraisal
3. Preliminary survey and analysis
4. Data collection and analysis
5. Highest and best use analysis
6. Application of the three approaches to value
7. Correlation/reconciliations of indicated values to derive final estimate of defined value
What are the three approaches to value used by appraisers to estimate value? - CORRECT
ANSWER Cost, sales comparison, and income
The land identification system based on semi-permanent physical features or bearings on a
compass is known as ____ and ____. - CORRECT ANSWER Metes and bounds
Residential subdivisions are commonly described by the ____ and ____ system of land
identification. - CORRECT ANSWER Block and lot
Name the 8 characteristics that affect land value. - CORRECT ANSWER Frontage,
width, depth, area, shape, topography, location, and off-site improvements
What is the 40-30-20-10 rule? - CORRECT ANSWER This rule describes the
percentage of the value of each quarter of land based on its depth. The first 25% of the land
amounts to 40% of the assessed value, the next 25% represents 30% of the value, the next
25% represents 20%, and the final 25% represents 10%.
Cost to produce an exact replica of a structure using the same materials, construction
standards, and quality of workmanship is known as ________ ____ ___ - CORRECT
ANSWER Reproduction cost new
, Cost to produce a structure with equivalent utility using contemporary materials and
standards is known as _________ ____ ___ - CORRECT ANSWER Replacement cost
new
Cost of a property when it was originally constructed is known as __________ cost -
CORRECT ANSWER Historical
The age of a property based on condition and utility is know as the ______ ___. - CORRECT
ANSWER Effective age (EA)
Compare and contrast remaining economic life (REL) and economic life (TEL). - CORRECT
ANSWER REL estimates the number of years remaining during which improvements
contribute to property. TEL is the total number of years that improvements on land contribute
to property value.
List the three types of depreciation. - CORRECT ANSWER Physical deterioration,
functional obsolescence, external (economic) obsolescence
A ______ roof is a one which has a steeper lower part and a shallower upper part. -
CORRECT ANSWER Mansard
A _____ is a triangular portion of a wall between the edges of a dual-pitched roof -
CORRECT ANSWER Gable
A ______ is a usually symmetrical two-sided roof with two slopes on each side. The upper
slope is positioned at a shallow angle, while the lower slope is steep. - CORRECT
ANSWER Gambrel
A ____ roof is flat. - CORRECT ANSWER Flat, buddy!
This kind of house is described as long, close-to-the-ground profile, long, low roofline;
typically one-story. - CORRECT ANSWER Ranch-style house
